GPH Ispat rakes in record profit since listing
The steel-maker started production at its new plant in June using quantum technology
Leading steel manufacturer GPH Ispat registered a record 454% profit last year since its share market listing in 2012, thanks to a combination of introducing new products, capacity expansion and ramping up export to China even amid the pandemic rampage.
The steel-maker logged Tk166.08 crore profit in the 2020-21 fiscal year as its earnings per share (EPS) stood at Tk4.18, according to a GPH disclosure.
As the company witnessed the record profit jump, it has recommended a 30% (20% cash and 10% stock) dividend for its shareholders – which is 20% higher than the previous 2019-20 fiscal year.
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The company says the bonus shares have been recommended to utilise the retained amount for capacity expansion.
In the previous 2019-20 fiscal year, GPH Ispat's profit was only Tk29.94 crore, while the EPS was Tk0.79. In that year, the company paid a 10% dividend – 5% cash and 5% stock.
In the disclosure, GPH Ispat said its annual general meeting (AGM) will be held online on 20 December. The record date has been fixed for 22 November. The stock dividend is subject to the approval of the shareholders at the AGM and subsequent approval of the securities regulator.
GPH Ispat Limited is one of the leading integrated steel manufacturers in the country engaged in the manufacturing and trading of MS Billet and MS Rod.
It was incorporated in 2006 and was listed on the stock exchanges in 2012.
In November last year, it started exporting MS billet to China.
Earlier in June this year, GPH Ispat started commercial production at its new plant that was built using quantum technology – the first in Asia and the second in the world – at Tk2,500 crore.
The annual production capacity of the plant is 8,40,000 tonnes of billet and 6,40,000 tonnes of rod and medium section products, such as BIM steel, angle, channel, flat bar, etc.
With this, the annual production capacity of the company hovers around 10,08,000 tonnes of billet and 7,60,000 tonnes of rod and medium section products.
The expanded production at the plant is expected to increase GPH's market share in the steel industry to around 10% from the existing 3-4%.
